"If you haven't heard, I have a baby boy on the way," Capps said. "I'm fortunate that with Epic's success and generosity, I can be a stay at home dad for a while.

"My wife Julianne and I are very happy in Raleigh, and other than cleaning up baby barf, I don't have much planned. I might do some teaching, spend more time on creative writing, and maybe get more active with a few charities."

Though Capps is stepping down as studio president, he will remain involved with Epic Games in an advisory role, as well as remaining a member of the company's board of directors.

"Epic founder and CEO Tim Sweeney and other board members asked me to stay on the board, and I'm thrilled to do so as I'm truly excited about our future games and Unreal Engine 4," he added.

Epic Games is currently developing a number of games, including Gears of War: Judgment, Fortnite and Infinity Blade Dungeons. The studio is also behind the next generation game engine Unreal Engine 4, which will debut with Fortnite on PC in 2013.